Question

The study of consumer behaviour is important for marketing managers. Explain any TWO (2) reasons
for understanding consumer behaviour. Substantiate your answer by elaborating ONE (1) suitable
example for each reason being identified.

Answer 1

Ans) Consumers behavior is a major factor for marketing managers to evaluate and promote their marketing strategies.

Below are the two main reasons for understanding consumer behavior.

1) Classification of consumers

The study of consumer behavior will help in understanding the key groups of customers and key characteristics like age groups, choices, volumes, etc. Based on this data the marketing team can strategize there marketing strategy to the tune of key consumer groups and this will help in achieving increased sales and more customer reach.

Example: Suppose you are into the gaming industry and you notice that your maximum sales have been for the Football games in a particular region also based on your study you come to know that the age group that has brought this game has a large range. So this helps in creating a strategy of marketing and promotion, you can contact a club footballer who is famous in the local region and can rope him in for promotions. This will definitely increase your sales.

2) Understanding the competition in the market

Consumer behavior can help to understand what decisions are consumers are making while buying and also the reason why the consumers are buying the product of your competitor, this will help you to arrive at the root cause, and based on that the necessary corrective actions can be taken. This even leads to innovative products just to overcome the competition.

Example: Suppose you and your competitor are selling sports merchandise and you notice that your competitor has more sales compared to you because of his marketing technique to sell kits of different sports merchandise and he markets it as a family pack and promotes it as all the sports merchandise requirement of the family. The consumers are the majority who usually buy for the whole family and since he is selling in bulk his prices are also competitive. This can be used to redefine the marketing strategy.

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